“India is not an easy market to invest it,” he says. Widening stress in the banking sector, sluggish economic indicators as well as central banks commentary is indicating a difficult time ahead.
Mukherjea advises investors to remain cautious and use decent earnings to book profits as and when possible, especially in cyclical names.
Speaking on sectors, he says that one must look at sectors with ‘bedrock strong franchise’ like autos, IT and cement. Competitive edge in IT makes the sector attractive.
Cement sector, which has been reaping benefits of 21-22 percent government capex growth in FY16, is likely to see reduction in investments by mid-2017, Mukherjea says.
Even in FMCG, he advises booking profits whenever possible. Rural stories will be difficult under the current government, he says adding that once monsoon comes, temptation to stay in the sector will increase.
Mukerjea is bullish on export-oriented stocks, IT, auto and chemical sector.
Transcript to follow..